June 16, 2019

Credit Unions Now Able to Offer Federally Insured Attorney Trust Accounts

On December 18, 2014, President Barack Obama signed into law H.R. 3468, “Credit Union Share Insurance Fund Parity Act.” This Act allows credit unions to federally insure attorney trust accounts to the maximum amount allowed under the Share Insurance Fund.

The Act requires the National Credit Union Administration Board to provide pass-through share insurance to shares of any interest in a lawyer’s IOLTA account. Previously, credit unions were not able to insure these accounts at the same levels as banks because not all clients were members of the credit union, creating a competitive disadvantage for credit unions with attorney trust accounts.

 

Print Friendly, PDF & Email

Comments

  1. Susan Hoyt says:

    UPDATE: The Colorado Legal Community Credit Union does not offer trust accounts at this time. However, they are working on offering trust accounts, and CBA CLE Legal Connection will publish an article when attorney trust accounts are available through LCCU.

Speak Your Mind

*